Singapore markets closed
  • Straits Times Index

    3,246.51
    -26.97 (-0.82%)
     
  • Nikkei

    28,930.33
    -11.77 (-0.04%)
     
  • Hang Seng

    19,773.03
    +9.12 (+0.05%)
     
  • FTSE 100

    7,550.37
    +8.52 (+0.11%)
     
  • BTC-USD

    21,285.15
    -2,098.64 (-8.97%)
     
  • CMC Crypto 200

    504.88
    -36.72 (-6.78%)
     
  • S&P 500

    4,228.48
    -55.26 (-1.29%)
     
  • Dow

    33,706.74
    -292.30 (-0.86%)
     
  • Nasdaq

    12,705.21
    -260.13 (-2.01%)
     
  • Gold

    1,760.30
    -10.90 (-0.62%)
     
  • Crude Oil

    89.91
    -0.59 (-0.65%)
     
  • 10-Yr Bond

    2.9890
    +0.1090 (+3.78%)
     
  • FTSE Bursa Malaysia

    1,504.44
    -12.18 (-0.80%)
     
  • Jakarta Composite Index

    7,172.43
    -14.12 (-0.20%)
     
  • PSE Index

    6,863.86
    +39.23 (+0.57%)
     

Trading in shares of Chinese developer Kaisa suspended -HKEX

·1-min read
A sign of the Kaisa Group Holdings is seen at the Shanghai Kaisa Financial Center, in Shanghai

HONG KONG (Reuters) -Trading in shares of embattled Chinese developer Kaisa Group Holdings was suspended on Wednesday, according to the Hong Kong stock exchange.

The suspension comes after a source with direct knowledge of the matter said Kaisa was unlikely to meet its $400 million offshore debt deadline on Tuesday.

Non-payment by Kaisa would push the 6.5% bond of Kaisa, China's largest holder of offshore debt among developers after Evergrande, into technical default, triggering cross defaults on its offshore bonds totalling nearly $12 billion.

To avoid default, bondholders owning over 50% of notes due on Dec. 7 and Kaisa notes worth a total of $5 billion sent the company draft terms of forbearance late on Monday, a separate source with direct knowledge of the matter said.

Even in the case of a technical default, Kaisa and offshore bondholders could discuss forbearance terms, two sources with knowledge of the matter said.

Kaisa, whose shares rose 1.1% on Tuesday, said it was open to discussion on forbearance, without elaborating.

Larger rival China Evergrande also did not make payments on some U.S. dollar bonds at the end of a month-long grace period, sources familiar with the situation told Reuters on Tuesday, setting the stage for a massive default by the world's most indebted property developer.

(Reporting By Anne Marie Roantree and Donny Kwok; Editing by Kim Coghill)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting